Peg Putt

“The point is clearly that the development that was promised has now been significantly downscaled, and the pokies roll out in pubs and clubs should be reduced in the same proportion,” Ms Putt said.

RESPONSE TO CLAIMS ON $25M VALUE OF SMALLER FREYCINET DEVELOPMENT
Same Size Development as Promised Should be Delivered, or the Pokies Reward be Reduced
Peg Putt MP
Greens Opposition Leader
Wednesday, 20 February 2008

The Tasmanian Greens today responded to claims from the Federal Group that their Freycinet development will cost $25 million in today’s dollars (despite a figure of $10 million was reported in the press), saying that the crux of the issue about delivering on the pokies deal tied to this development is that it is a substantially smaller development than promised, and that the pokies rollout should be reduced in the same proportion.

Greens Opposition Leader Peg Putt MP said that increased building costs, CPI increases, and rocketing real estate values all mean that a development calculated at $25 million 5 years ago would translate into millions many more dollars in value today. The CPI increase in housing costs over the period alone results in a $25 million development in 2003 now priced at $30.5 million.

Ms Putt expects that the government to have ensured that the legislation and Deed of Agreement that tied the exclusive rights to pokies across Tasmania to the Freycinet development was clear that this meant the development as it was described and costed at that time, and did not allow wriggle room for Federal to renege on full delivery of their part of the deal after they got what they wanted from government.

“The point is clearly that the development that was promised has now been significantly downscaled, and the pokies roll out in pubs and clubs should be reduced in the same proportion,” Ms Putt said.

“Obviously a development costed at $25 million six years ago would cost a lot more today, given the big increases in building costs, real estate valuations and in the Consumer Price Index, and any government serious about getting both sides of the deal fulfilled would have made sure that this was covered.”

“It’s ridiculous to be arguing that the smaller development still meets the promise of a delivering a big one because it simply doesn’t, regardless of whether inflation has the new plans now costing $25 million.”

“The CPI changes for housing applied to the plan show that a development costing $25 million in 2003 will now cost $30.5 million at least.”

www.tas.greens.org.au

On Tasmanian Times: Tasmanian writer and social policy analyst James Boyce has written extensively on the outrageous deal between Federal Hotels and Bacon-Lennon Labor: Read the definitive analysis HERE